City stands to make $32 million from Lansdowne Park deal

Months after it appeared extra costs at Lansdowne Park had wiped out the possibility of the city turning a profit on the project, a report released Tuesday shows Ottawa now stands to earn more than $30 million.

The Lansdowne Partnership Plan annual report outlines the park’s financial performance for 2015, a year that saw the Ottawa Redblacks make it to the Grey Cup and an influx of new restaurants and retailers open.

Revenue in 2015 increased 72 per cent over 2014 to $43 million, including an increase of $4.7 million from TD Place and $11.5 million from retail.

Ottawa Sports and Entertainment Group (OSEG) still reported a deficit of about $985,000 last year, but it was much smaller than the $11 million operating loss in 2014.

The long-term outlook has also improved since the last update.

Total payments over the 30-year partnership are now estimated to be $457 million, compared to last year’s estimate of $424 million.

The city is now set to receive $32 million, compared to last year’s estimate of zero.

OSEG says the reason for this increase is the agreement city council made last fall to guarantee $24 million to OSEG to settle an outstanding dispute over costs to fix the stadium and Ottawa Civic Centre.

The report says 2.5 million people visited Lansdowne in 2015. The equivalent of 1,000 full-time jobs have been created at the park, including 375 with OSEG.

The retail district is now 97 per cent leased and all major tenants are in place. Active marketing efforts are underway to lease the remaining three floors of the office tower, OSEG says.